DIRECTORS & OFFICERS LIABILITY INSURANCE FAQs
What are some of the major exclusions?
- Fines and penalties and claims for seepage or pollution.
- Excluded territories/jurisdiction.
- Claims for bodily injury, property damage.
- Known acts prior to inception.
- War & nuclear risks.
- Waiver of subrogation.
- Criminal acts, libel, slander or other defamations and professional liabilities e.g. architects, managers, etc.
- Major Shareholders Exclusion: Any claim brought by major shareholders having more than stipulated % of the voting stock or by any security holder unless the security holders without instigation and totally independent of major shareholders brings about the claim.
- Pending and Prior litigation exclusion.
- Entity EPLI and Entity Security claims (except if covered as an extension).
- Auto acquisition of subsidiaries with an asset size of more than stipulated %.
- Environmental liability & ADR claims originating from US/Canada.
What does Directors & Officers Liability Insurance cover?
The policy covers legal liability including costs to defend any civil and/or criminal action against the Directors and/or Officers holding a responsible position. This action may be brought against the Directors and/or Officers by Shareholders, own Employees, Customers, Competitors or Members of the public or even regulatory authorities.
What are some of the policy features?
- Legal liability including costs to defend any civil and/or criminal action against the Directors and/or Officers holding a responsible position.
- This action may be brought against the Directors and/or Officers by Shareholders, own Employees, Customers, Competitors or Members of the public or even regulatory authorities.
- We may take over the defense of any claim at our discretion this would in no manner make us liable.
- Any material changes are immediately notified to us.
- In case of a claim or series we may pay up to indemnity limit and be free from any further liability.
- We can include extensions above, which will be covered at nominal extra charge.
- Jurisdiction applicable is of India but as an extension, we can allow worldwide.
What are the required documents?
Documents required include
- Proposal form.
- Latest consolidated financials of the company.
- Fast Track Renewal Declaration – In case the referral is our own renewal.
Which are the excluded business categories?
- Financial institutions.
- Companies who do not have a registered office in India (except for subsidiaries of an Indian insured).
- Parent organizations through subsidiaries.
- Construction and related business.
- Advertising and Media Companies.
- Political Organizations and NGOs.